BUSINESS confidence declined in Wales for only the second time since 2003 as orders and output fell around the country a survey showed.

Most regions in the UK suffered a fall in manufacturing orders between August and October driven by a weak domestic market, according to the CBI and Experian's Regional Trends Survey.

And with output also down in many areas and a further 22,000 factory job losses forecast in the next three months, optimism among UK manufacturers crashed.

The sharpest falls were in Northern Ireland and the West Midlands, while the downward trend in Wales continued for the third successive quarter.

Only three regions reported an increase in total new orders - York-shire and the Humber, north west England, and Scotland.

The poor performance of chemicals, textiles, metal manufacturing and engineering was chiefly responsible for the downturn.

Experian economist Dimitri Gunawardena said: "The poor performance of manufacturing in the third quarter reflected a combination of weak domestic and external demand. However, the survey suggests that domestic weakness was chiefly responsible.

"Whereas some regions reported an upturn in export orders, the widespread and sharp decline in domestic orders is worrying."

Profits were also hit across all regions of the UK as costs rose and prices fell. Most regions forecast further rises in costs, such as fuel and energy bills, over the next three months.

CBI head of economic analysis Doug Godden said: "As well as suffering from a squeeze on orders, companies' pricing power is weak and costs have been rising.

"Even in the three regions where orders increased, higher costs meant business confidence suffered."

* The trends were taken from the 705 replies to the CBI's Quarterly Industrial Trends Survey received between September 22 and October 12.